NZSK Legal successfully represented Lik Tin Century Sdn Bhd in a complex construction dispute involving significant delays, extensive variation order disputes, defect liabilities, and defamatory allegations arising from a road widening and street lighting project in Teluk Kumbar, Penang. Lik Tin Century, as sub-contractor to the main contractor, appointed the Defendant to carry out substantial construction works under a contract dated 24 February 2017.

The project, originally scheduled for completion on 27 August 2017, faced repeated delays due to the Defendant’s inability to complete works on time. Despite multiple requests for extensions, the Defendant ultimately completed the project only on 30 June 2019, resulting in a delay of 334 days. This delay caused Lik Tin Century to incur Late Ascertained Damages (LAD) at RM1,000 per day, together with exposure to penalties from the main contractor at RM1,700 per day.

The Plaintiff also encountered numerous issues involving disputed variation orders, where the Defendant claimed inflated and unauthorised sums. Detailed joint inspections later revealed that many of these VO claims exceeded agreed amounts or were submitted without approval, resulting in an excessive overcharge of RM160,833.17.

Additional problems arose when the Defendant failed to complete required defect rectification works, prompting the main contractor to identify further defects amounting to RM210,500. The Defendant also failed to return project items such as safety road barriers and road signboards, causing additional losses.

Compounding matters, the Defendant issued a defamatory letter to the project owner, falsely alleging that Lik Tin Century refused to settle a final account sum of RM305,442.21, despite knowing that the final account had not been finalised. This misleading allegation damaged the Plaintiff’s commercial reputation and jeopardised future tender opportunities valued in the tens of millions.

After a full trial before the High Court of Penang, the Court delivered its decision on 25 August 2025 and granted substantial reliefs in favour of Lik Tin Century Sdn Bhd. The Court allowed LAD totalling RM334,000.00, awarded RM210,500.00 for defect rectification costs (subject to minor GST and moiety deductions), and cancelled the Defendant’s excessive variation order charges of RM160,833.17.

The Defendant’s entire counterclaim was dismissed, and interest at five percent per annum was ordered from the filing date until full settlement. Although each party was directed to bear their own costs, the overall decision represents a strong and comprehensive victory for Lik Tin Century.

This case demonstrates NZSK Legal’s capability in handling high-value construction disputes, intricate technical issues, and reputational harm in complex infrastructure projects.